1

The Link between Customer Satisfaction and

Employee Satisfaction in Restaurant Industry
An analysis of full-service restaurants in Tampico, Mxico.



Mariel Guzmn
Bertha Rodrguez
Paulina Manautou

TABLE OF CONTENTS

CHAPTER 1: INTRODUCTION ......................................................................3
Problem Statement ..4
Purpose of the Study ...5
CHAPTER 2: REVIEW OF LITERATURE ..5
Customer Satisfaction .5
Employee Satisfaction .....6
Internal Marketing ...7-8
Research Question & Hypotheses ....8-9
CHAPTER 3: METHODOLOGY ..9
Sample Criteria 10-12
REFERENCES 13-17
APENDIX A: REQUEST FOR PERMISSIONS 18-19
APENDIX B: ENGLISH VERSION ...20-21
APENDIX C: SPANISH VERSION ...22-23
APENDIX D: EMPLOYEE OF SURVEY WITH SEVEN POINT LIKERT-
SCALE ..24
APENDIX E: EMPLOYEES SATISFACTION SURVEY ..25
APENDIX F: SPANISH VERSION 26
APENDIX G: EXCEL TABLE

CHAPTER 1: INTRODUCTION

This study refers about the relationship existing between customer
satisfaction and employee satisfaction. Massad, Heckman, and Crowston (2004)
also recognize that the service provided by employees, help to build a good
relationship with customers and in some cases, increases their loyalty. Burke,
Graham, and Smith (2005) stated that when individuals purchase a particular
service, the employee directly influences the customers perception of the
quality of the transaction. Moreover, depending on the personal experience, a
non-satisfied customer would buy the service elsewhere, and share the negative
experiences with others. In contrast, a satisfied customer may result in a
positive word of mouth recommendation and loyalty (Torres & Kline, 2006).

Employee satisfaction is impacted by employees perceptions of their
job and the organization for which they work (Eskildsen & Nussler, 2000).
Furthermore, customer satisfaction is influenced by the interpersonal
encounters between customers and employees in a service setting (Wansoo
2009). In addition, the big challenge for todays service relays on the excellent
service quality and a high customer satisfaction (Hung, Huang, & Chen, 2003).

The aim of this study is to find a relationship between the variables,
customer satisfaction and employee satisfaction, in full-service restaurants in
Tampico, Mexico by using a regression analysis. Tampico City has a
population of 659,597 people, located in the northeast part of Mxico. It is
located in the Gulf of Mxico and has manufacturing, petrochemical, oil, and
agricultural industries.

Problem Statement

Leadership and organizational practices are related to employee
satisfaction because of the influence of these practices on organizational
performance (Enz, Camina, & Walsh, 2006; McManus, 2005; Vora, 2004;
Kundu & Vora, 2004). Empirical research regarding employee and costumer
satisfaction has limitations. One of the primary limitations is the scarce number
of studies addressing the interdependencies that both constructs have with each
other (Homburg & Stock, 2004).

The goal of the study is to determine a relationship between employee
satisfaction and customer satisfaction in ten full-service restaurants in Tampico,
Mexico. A quantitative analysis of the specific trends or interactions among
these constructs was suitable because it uses objective measurements. Two
survey instruments were the means to provide quantitative data whose quality
remained unaffected by any bias that the investigator might have had or
developed during the research (Creswell, 2004).

The quantitative design relates one or more variables to the specific
outcomes of a group of people (Creswell, 2004). The design uses an
explanatory type of study where the researcher shows correlation between
variables: Change in one variable can affect another within a specific
population (Creswell, 2004). Also included, is the evaluation of the potential
role of employee satisfaction as a predictor of customer satisfaction. In doing
so, the study was the conduit for evaluating employee satisfaction, as well as
guest satisfaction of ten restaurant located in the city of Tampico, Mxico.

Purpose of the Study

The purpose of this quantitative design is to determine the degree to
which employee satisfaction affects customer satisfaction among employees
and guests of full-service restaurants in the city of Tampico, Mexico.


CHAPTER 2: REVIEW OF LITERATURE

Customer Satisfaction

Hung, Huang, and Chen (2003), stated that the big challenge for todays
service relays on the excellent service quality and high customer satisfaction.
Customer satisfaction refers to the customers overall evaluation of the
performance of a service (Gustafsson, J ohnson, & Roos, 2005). However,
Homburg and Stock (2004) stated that anecdotal and limited evidence directly
impact on the relationship between customer and employee satisfaction. A
satisfied customer might become a repeat buyer, and this overall satisfaction
has a strong positive effect on customer loyalty intentions (Prayukvong,
Sophon, Hongpukdee, & Charupas, 2007).

At the time the customer costumer reaches or exceeds the expectative
and satisfaction, he or she can become a loyal costumer, but it always depends
on the personal experience and perception of quality (Yu, Lei-Yu, & Yu-Ching,
2005). DiCostanzo (2008) explains that non-satisfied customer would prefer to
buy the product or service anywhere else. On the other hand, a satisfied
customer can be a positive word of mouth recommendation and improve loyalty
(Torres & Kline, 2006). In contrast, a negative word-of-mouth leads to reduced

customer satisfaction, if follows that satisfied customers spreading positive

word-of-mouth might create new customers to the business (Yu et. al 2005).

Products and services of high quality leads to customer satisfaction and
higher profits (Matzler, Hinterhuber, Daxer, & Huber, 2005).

Customers perceptions of satisfaction are almost always dependent on
the factors of quality, facilities and service that the company offers, resulting in
loyal customers and favorable word of mouth exchanges (Prayukvong, et al.
2007). With the purpose of improving their competitive position, many
companies use some form of customer satisfaction programs for the evaluation
and control their products and services. (Maztler, Bailom, Hinterhuber, Renzl.,
& Pichler, 2004). These authors also assume that increased employee
satisfaction ultimately leads to increased customer satisfaction.

Employee Satisfaction

Employee Satisfaction is An attitude that results from an evaluative
process, where some comparison standard about the work environment is
performed with the actually perceived work environment (Homburg & Stock,
2004, p.146). Its been postulated by the service profit chain that high levels of
customer satisfaction can be lead by the satisfaction of employees. This
becomes crucial because it can eventually affect in the loyalty of customers as
well as the profits of the company (Estelami & Hurley, 2007). Van der Voordt
(2004) explains that for employees it is very important to gain gratification
from their job. Way more important, there is evidence that sustain that the
higher the level of rotation between the employees, the lower the levels of
satisfaction can come, referring to customers (Estelami & Hurley, 2007).

Michael (2008) stated that employee satisfaction increases significantly

when people perceive balance between their work and personal lives
experience. Besides that, exists several programs have been developed by
organizations to improve the satisfaction of the employees (Huang, 2008). On
the other hand, the life quality is very important for the employees, the
managers emotional intelligence is the main determinant between the
supportive leadership behaviors and employee satisfaction (J ohn, 2009).

Ritchie and OMalley (2009) indicate that supervisors play an important
role on employees satisfaction. It is important to know how supervisors may
influence on the perception between the organization and employees.
Brandford, Crant, and Philips (2009) also perceived the importance of a
customer interaction with a satisfied salesperson. The quality of that interaction
could help the employee to gain the motivation to work better.

Silva (2006) explained that studying the attitude of the workers has
become a major issue because, by knowing the reasons that make an employee
unhappy, the company can make rearrangements to the basis of the problem.
Moreover, diverse job tasks, kind co-workers and a nice working environment
have been detected both as motivational and satisfaction factors (Bjerker, Ind,
& Paolli, 2007). People agreed that a pleasant atmosphere contributes in the
creation of optimistic feelings, (Bjerker, et al. 2007).

Internal Marketing

Internal marketing refers to the attraction, development, motivation and
retention of skilled employees through job products that fulfill their needs.
(Parasuraman, Zeithmal, & Berry, 1991). These authors stated that treating

employees and cheering them up is known as the philosophy behind internal

marketing and is the strategy that shapes jobs to fit human needs. If the
employees are the most important element of the firm, then the organization
should give a satisfactory work environment, and keeps the best workers,
(Ferreiram A. 2008). Knowing the focus of the organization, the same author
mentioned that the organization have to concentrated on customer needs and
aspects that gives them satisfaction on the job.

Dicostanzo (2008) stated that the development of the study involved
internal marketing within the area of human resource in an organization, relates
to the hospitality industry in Mexico. The author also comments that internal
marketing suggests the idea of considering employees as internal customers of
the organization. Ahmed, Rafiq and Saad (2002) mentioned that in internal
marketing, one of the best strategies is to treat employees as customers to
improve service quality.


Research Question & Hypotheses
Creswell (2004) stated that the use of a quantitative analysis instead of a
qualitative or a mixed one provided objective results and ensured a lack of bias.
Cooper and Schindler (2003) stated tat the variables must measure what they
are intended to analyze. Recognition of the dependent and independent variable
is necessary (Neuman, 2003). The dependent variable is customer satisfaction,
while the independent one is employee satisfaction.
The research question will be the following:
Is there a significant relationship between customer satisfaction and employee
satisfaction of full-service restaurants located in Tampico, Mexico?

The research hypotheses will be the following:

H0: There is no relationship between customer satisfaction and employee
satisfaction.
H1: There is a relationship between customer satisfaction and employee
satisfaction.

C CH HA AP PT TE ER R 3 3: : M ME ET TH HO OD DO OL LO OG GY Y
The research design is going to be quantitative, using regression analysis
between variables. Quantitative analysis provides objective results and ensured
a lack of bias (Creswell, 2004). This study will consider full-service restaurant
customers, and full-service wait staff employees. Wait staff employees are the
ones that directly interact with the customers (Pettijohn, Pettijohn and Taylor,
2004).
Pettijohn, Pettijohn and Taylor, (2004) describe a full-service restaurant
as an establishment that offered a full-range of services and characterized with a
fine dining atmosphere. Also, the authors indicated that this atmosphere is
observed in restaurants with full-service bar, and those which the diners were
provided with table service. The restaurants wait staff was specified as being
employees in the establishment who have permanent relationship with the
customer, and take order directly for the customers (Pettijohn, et. al, 2004).
Aditionally, Noone & Kimes (2005) describe fine dinning restaurants are those
which the average check per person is above $30 USD.

According to those specifications given by Pettijohn, Pettijohn, & Taylor
(2004), these are the 10 full-service restaurants chosen:
Batutas Porta Romana El Budai

10

La Dolce Vita [2]

Arenas del Mar
Oriental
Baslico
Pan y Vino
J ardn Corona

Sample Criteria

Following Liao and Chuang (2004) methodology, the customer survey
(Appendix B) will be applied to 150 customers per restaurant. The survey will
be a compilation of 3 smaller surveys; service quality, customer satisfaction,
and customer loyalty. Although the three of them will be applied, the customer
loyalty survey will not be evaluated for this research. The survey scale is
worthy for the three scales and the range goes from 1, strongly disagree, to 7,
strongly agree Liao, H. & Chuang, A. (2004).

Likewise, following Pettijohns (2004) methodology, the employee
survey (Appendix D) will be applied to the total of wait staff employees of the
full service restaurants. In addition, considering the study of Liao and Chuang
(2004), the surveys must be applied to wait staff employees with at least one
month of job-age. Moreover, surveys have to be responded by at least 5
employees per restaurant (Liao and Chuang, 2004).

SimpleRegressionAnalysis
DependentVariable IndependentVariable
Y X
CustomerSatisfaction EmployeeSatisfaction

11

Consumer survey
The best way of measuring the satisfaction of the client is by means of a criterion of
general evaluation.
Overall, Am I satisfied by the decision to come to this restaurant?

Employee survey
14 questions
Average of results

Example on SPSS. Database.
Id. Customer Customer Satisfaction Employee Satisfaction
R11 5 6
R12 7 6
R13 6 6
R14 7 6
. 5 6
. 4 6
. 6 6
R1150 7 6
R21 6 7
R22 7 7
R23 5 7
R24 7 7
. 6 7
. 7 7

12

. 7 7
R2150 6 7

13

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18

A AP PP PE EN ND DI IX X
APPENDIX A: Request for Permission

Dear Professor Hui Liao,

I have read your research paper published in the J ournal of Business Research
of Management Journal, 14, 1986: Social responsibility and personal success:
Are you incompatible?
The study and the reported results caught my attention due to my interest in
finding a potential correlation between employee satisfaction and customer
satisfaction in restaurants located in Tampico, Mexico.
The research instrument that you developed and implemented in the
aforementioned study fits my research design. I would like to obtain a written
permission from you to administer the survey in my study to collect and
analyze data for my Research in the Marketing Field course.
Could you be so kind to let me know if it is possible? If so, Could you please
send me a copy of the instrument? Is there any cost associated to the number of
questionnaires to apply? I intend to sample around 1500 restaurant customers.
If it were possible to obtain permission from you, I will be asking you to sign a
format labeled Instituto Tecnolgico y de Estudios Superiores de Monterrey,
Permission to use an existing survey.
Thank you in advance for your time and consideration.
Sincerely,

Paulina Manautou
Bachelor in Marketing Learner
Instituto Tecnolgico y de Estudios Superiores de Monterrey

19

Dear Professor Wood and Hunt,

I have read your research paper published in the Academy of Management
Journal, 47(1) 2004: A multilevel investigation of factor influencing employee
service performance and customer outcomes.
The study and the reported results caught my attention due to my interest in
finding a potential correlation between employee satisfaction and customer
satisfaction in restaurants located in Tampico, Mexico.
The research instrument that you developed and implemented in the
aforementioned study fits my research design. I would like to obtain a written
permission from you to administer the survey in my study to collect and
analyze data for my Research in the Marketing Field course.
Could you be so kind to let me know if it is possible? If so, Could you please
send me a copy of the instrument? Is there any cost associated to the number of
questionnaires to apply? I intend to sample around 1500 restaurant customers.
If it were possible to obtain permission from you, I will be asking you to sign a
format labeled Instituto Tecnolgico y de Estudios Superiores de Monterrey,
Permission to use an existing survey.
Thank you in advance for your time and consideration.
Sincerely,

Paulina Manautou
Bachelor in Marketing Learner
Instituto Tecnolgico y de Estudios Superiores de Monterrey



.

20

APPENDIX B: Customer Satisfaction Survey. English Version.

Customer Evaluation of Service Quality
1. Has visually attractive parking areas and building exteriors.
2. Has a visually attractive dining area.
3. Has staff members who are clean, neat, and appropriately dressed.
4. Has a decor in keeping with its image and price range.
5. Has a menu that is easily readable.
6. Has a visually attractive menu that reflects the restaurants image.
7. Has a dining area that is comfortable and easy to move around in.
8. Has rest rooms that are thoroughly clean.
9. Has dining areas that are thoroughly clean.
10. Has comfortable seats in the dining room.
11. Serves me in a reasonable amount of time.
12. Quickly corrects anything that is wrong.
13. Is dependable and consistent.
14. Provides an accurate guest check.
15. Serves my food exactly as I ordered it.
16. Seems to handle busy times smoothly.
17. Provides prompt and quick service.
18. Gives extra effort to handle my special requests.
19. Has employees who can answer my questions completely.
20. Makes me feel comfortable and confident in my dealings with them.
21. Has personnel who are both able and willing to give me information
about menu items, their ingredients, and methods of preparation.
22. Makes me feel personally safe.
23. Has personnel who seem well-trained, competent, and experienced.
24. Seems to give employees support so that they can do their jobs well.

21

25. Has employees who are sensitive to my individual needs and wants,
rather than always relying on policies and procedures.
26. Makes me feel special.
27. Anticipates my individual needs and wants.
28. Has employees who are sympathetic and reassuring if something is
wrong.
29. Seems to have the customers best interests at heart.

Customer Satisfaction
1. I am happy about my decision to come to this restaurant.
2. I believe I did the right thing when i came to this restaurant.
3. Overall, I am satisfied with the decision to come to this restaurant.

Customer Loyalty
1. I will recommend this restaurant to others.
2. I am sure that I will not visit this restaurant again.
3. I will dine at another similar restaurant instead of this particular one.
4. I consider this restaurant to be reputable.
5. I definitely will not come to this restaurant again.


Liao, H., Chuang, A. (2004).






.

22

APPENDIX C: Customer Satisfaction Survey. Spanish Version.

Este restaurante:
1. Tiene un exterior y estacionamiento atractivo.
2. Tiene un rea de comedor visualmente atractiva.
3. Tiene empleados limpios, aseados y vestidos de manera apropiada.
4. Tiene la conviccin de respetar su imagen y el rango de precios.
5. Tiene un men fcilmente legible.
6. Tiene un men visualmente atractivo que refleja la imagen del
restaurante.
7. Tiene un rea de comedor que es cmoda y amplia para su traslado.
8. Tiene servicio de baos limpio.
9. Tiene las reas de comedor limpias.
10. Tiene asientos cmodos en el comedor.
11. Sirve en una cantidad de tiempo razonable.
12. Rpidamente corrige en caso de equivocarse.
13. Es de confianza y consistente.
14. Proporciona cuentas de consumo sin errores.
15. Sirve la comida exactamente como la ordene.
16. Aparenta manejar de manera tranquila situaciones con alto volumen de
clientela.
17. Proporciona el servicio correctamente y rpido.
18. Ofrece un esfuerzo extra para manejar mis peticiones especficas.
19. Tiene empleados capacitados para contestar las preguntas del cliente.
20. Me hace sentir cmodo.
21. Tiene el personal con la capacidad y disposicin de darme informacin
sobre el men, los ingredientes y los mtodos de preparacin.
22. Me hace sentir seguro.

23

23. Tiene personal quien parece bien entrenado, competente y

experimentado.
24. Parece apoyar a sus empleados para que realicen correctamente su
trabajo.
25. Tiene empleados sensibles a mis necesidades, en lugar de siempre
apegarse a las polticas y procedimientos establecidos.
26. Me hace sentir especial.
27. Anticipa mis necesidades.
28. Cuenta con empleados simpticos y tranquilos si algo est mal.
29. El empleado muestra un honesto inters por satisfacer las necesidades
del cliente.
30. Recomendar este restaurante a otras personas.
31. Estoy seguro de que no regresar a este restaurante.
32. Asistir a otro restaurante similar en lugar de este en particular.
33. Considero que este restaurant tiene Buena reputacin.
34. Definitivamente, no regresar a este restaurant.
35. Estoy contento con la decisin de venir a este restaurante.
36. Considero que fue una decisin acertada al venir a este restaurante.
37. En general, estoy satisfecho con la decisin de venir a este restaurante.




Liao, H., Chuang, A. (2004).

24

APPENDIX D: Example of Survey with Seven point Likert-Scale

Encuesta Consumidores

1. Estoy contento con la decisin de venir a este restaurante.
Totalmente
deacuerdo
Totalmente
desacuerdo
1 2 3 4 5 6 7
2. Considero que fue una decisin acertada al venir a este restaurante.
Totalmente
deacuerdo
Totalmente
desacuerdo
1 2 3 4 5 6 7
3. En general, estoy satisfecho con la decisin de venir a este restaurante.
Totalmente
deacuerdo
Totalmente
desacuerdo
1 2 3 4 5 6 7

25

APPENDIX E: Employee Satisfaction Survey

1. I am satisfied with the information I receive from my supervisor about
my performance
2. I receive enough information from my supervisor about my performance
3. I receive enough feedback from my supervisor on how well Im doing
4. There is enough opportunity in my job to find out how Im doing
5. I am satisfied with the variety of activities my job offers
6. I am satisfied with the freedom I have to do what I want on my job
7. I am satisfied with the opportunities my job provides me to interact with
others
8. There is enough variety on my job
9. I have enough freedom to do what I want in my job
10. My job has enough opportunity for independent thought and action
11. I am satisfied with the opportunities my job gives me to complete tasks
from beginning to end
12. My job has enough opportunity to complete the work I start
13. I am satisfied with the pay I receive for my job
14. I am satisfied with the security my job provides me

Wood, v., Lawrence B. & Hunt, S. (1986)

26

APPENDIX F: Employee Satifaction Survey. Spanish Version.

1. Estoy satisfecho con la informacin que recibo por parte de mi
supervisor con respecto a desempeo laboral
2. Recibo suficiente informacin por parte de mi supervisor con respecto a
mi desempeo laboral
3. Recibo suficiente retroalimentacin por parte de mi supervisor con
respecto a mi desempeo
4. Hay oportunidades para darme cuenta que tan bueno es mi desempeo
5. Estoy satisfecho con la variedad de actividades que ofrece mi trabajo
6. Estoy satisfecho con la libertad de hacer lo que quiera en mi trabajo
7. Estoy satisfecho con las oportunidades que me ofrece mi trabajo para
interactuar con los dems
8. Hay suficiente variedad en mi trabajo
9. Tengo la suficiente libertad para hacer lo que quiera en mi trabajo
10. En mi trabajo hay suficiente oportunidad para mostrar acciones y
pensamiento independiente
11. Estoy satisfecho con las oportunidades que tengo en mi trabajo para
completar mis tareas de principio a fin
12. En mi trabajo hay suficiente oportunidad de terminar cada tarea que
empiezo
13. Estoy satisfecho con el sueldo que recibo
14. Estoy satisfecho con la seguridad que tengo en mi trabajo.


Wood, v., Lawrence B. & Hunt, S. (1986)